Used-car leasing emerges as key strategy for cost and sustainability

Used-car leasing is rapidly becoming a strategic tool for organisations seeking to balance cost pressures with sustainability goals, according to the latest white paper from the Arval Mobility Observatory.

The report, “Fleet Transformation: Integrating Used-Car Leasing for Cost Efficiency and Sustainable Impact,” highlights how businesses across Europe are increasingly turning to professionally refurbished vehicles – including second-life battery electric vehicles (BEVs) – to optimise fleet operations.

With mobility costs rising and regulatory pressures intensifying, the study finds that used-car leasing offers a practical solution for both companies and individuals. By shifting from ownership to leasing, organisations can avoid upfront capital expenditure, reduce exposure to volatile resale values and benefit from more predictable operating costs.

The European used car market is already showing strong momentum, particularly for vehicles aged three to five years, which are seeing fast turnover and elevated pricing. Many corporate fleets have already integrated used vehicles into their sourcing strategies, with growing numbers of second-life electric vehicles entering circulation.

According to the report, used-car leasing can deliver total cost of ownership savings of between 10% and 25% compared with equivalent new vehicles. The model also transfers residual value risk to leasing providers, while giving access to refurbished vehicles – often still covered by battery warranties in the case of EVs.

Beyond cost savings, used-car leasing is also helping organisations accelerate electrification. Lower monthly payments and shorter lease cycles enable businesses to scale BEV adoption more quickly and test electric vehicles within their driver base without long-term commitments.

The white paper also underscores the importance of policy support, particularly for second-life electric vehicles. Weak demand in some markets has led to declining residual values for EVs, but targeted incentives and improved transparency around battery health could help stabilise the sector.

Arval’s recent analysis of 24,000 battery state-of-health certificates found that used EVs retain 93% of capacity at 70,000 kilometres and remain above 90% even after 160,000 kilometres – evidence, the report says, of their reliability and long-term viability.

To support adoption, the paper outlines a clear framework for implementation, including setting standards for vehicle quality, running pilot programmes, and evaluating cost and sustainability outcomes before scaling the model across fleet policies.

As organisations navigate the dual challenges of cost control and decarbonisation, the Arval Mobility Observatory concludes that used-car leasing is set to play an increasingly central role in the future of fleet management.